Petrol Price In Karur Today

Petrol price in Karur is composed of different domestic and international elements. International factors include crude oil price in the global market and Indian rupee to US dollar exchange rate. Domestic elements include oil company's profit margins, state government tax, central government tax and dealer's commission.

Let's us look at each element that affects petrol price in Karur in detail.

1. Indian Crude Basket: More than 70% of India's unrefined petrol requirements are being imported from different nations. The cost of Indian crude basket, which is the cost of unrefined petrol imported by Indian oil companies, forms base price of petrol price in India.

The cost of unrefined petroleum is dynamic in nature and changes consistently depending on various elements including demand and supply metrics, climatic conditions and political stability in oil-producing nations. To calculate the current petrol price in Karur, yesterday's cost of Indian crude basket will be considered.

1. Currency Exchange Rate: Crude oil trading typically happens in US dollars. Indian oil companies purchase each barrel of crude oil in US dollars. Henceforth, while calculating petroleum cost in Karur, every US dollar will be converted into Indian rupee. The fluctuating nature of US dollar thus affects petrol price in India.

1. Central Government Taxes on Petrol: Indian government collects excise duty on every litre of petrol sold in the country. The tax rate remains same across all the Indian states. Currently, the excise duty on petrol in India is Rs.19.48 per litre. The latest revision was announced in February 2017, when the government reduced excise duty on Petrol and diesel by Rs.2 per litre.

1. Tamil Nadu State Tax on Petrol: The state government levies value-added tax (VAT) on each litre of petrol sold in the state. Not at all the states have same VAT rate. Hence the VAT rate on petrol changes from one state to another.

Currently, Tamil Nadu State government charges a VAT of 32.06% on each litre of petrol sold in the state. Since Karur comes under the Tamil Nadu state, the same rate applies to the city of Karur.

1. Profit Margins of Oil Companies: Profit margins of the Indian OMCs that include crude oil logistics charges, oil refining costs, and marketing costs do affect the petrol price in Karur. However, the change may not be on a regular basis. Whenever there is a revision in profit margins, petrol prices in the city would get affected.
2. Dealer's Commission: Petrol dealers buy petrol from oil companies and sell it in their respective petrol pumps. They add oil transportation costs from the refineries to the petrol station, pump maintenance costs, etc., in the form of dealers commission to the cost price of petrol. The dealer's commission is usually decided by the oil companies and will be revised once every year. Hence, it will not show continuous effect on petrol price in Karur.

Components of Petrol Price in Karur, Tamil Nadu

Using the factors listed above, let's see how the petrol rate in Karur on 11th May 2018 was calculated.

*Disclaimer: BankBazaar makes no guarantee or warranty on the accuracy of the data provided on this page, the prevailing prices are susceptible to change and provided on an as-is basis. We accept no liability for any loss arising from the use of the data contained on this website.